24 June 2017

RBI widens scope of Banking Ombudsman Scheme

RBI widens scope of Banking Ombudsman Scheme

The central bank has extended the scope of Banking Ombudsman Scheme. As per RBI, under the amended scheme, a customer would also be able to lodge a complaint against the bank for its non-adherence to RBI instructions with regard to mobile banking/ electronic banking services in India.

As per the amendment, the pecuniary jurisdiction of the Banking Ombudsman to pass an award has been doubled to 20 lakh rupees. The Reserve Bank extended the scope of Banking Ombudsman Scheme under which banks could be penalized for mis-selling third-party products like insurance and mutual funds via mobile or electronic banking.

Banking Takeaways from Above News-

The Reserve Bank of India was established on April 1, 1935, in accordance with the provisions of the Reserve Bank of India Act, 1934.

RBI was nationalized in 1949.

Urjit Patel is the 24th Governor of RBI.

Banking Ombudsman is a quasi-judicial authority functioning under the Banking Ombudsman Scheme, 2006.